Hi folks,

In the question I was calculating the rolldown return of the bond below:

“Roll down the THB yield curve: Purchase a 2-year zero-coupon note with a current yield-to-maturity of 2.00% and sell it in a year.”

My calculation is:

The current price = 100/(1+2%)^2 = 96.1169 (same with the solution);

**For the price after a year, based on my calc, it should be 100/(1+2%) = 98.0392.**

Then second year when mature, 100/(1+2%)^0 = 100

However, the solution shows the price after a year is **99.009** instead of my number and it is not in the errata. I am very confused, could you please help?